Detroit

10 years ago

GM’s Death Knell?

Uh oh: According to the Associated Press, “General Motors Corp.'s auditors have raised ‘substantial doubt’ about the troubled automaker's ability to continue operations, and the company said it may have to seek bankruptcy protection if it can't execute a huge restructuring plan.” GM faces a March 31 deadline to have signed agreements with debt holders and the United Auto Workers. According to an auditors’ report, "The corporation's recurring losses from operations, stockholders' deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern." In pre-market trading, GM’s share price fell 18 percent to $1.80.